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NOV. - DEC. 2017

EXIM INDIA PRODUCTS :

The Goods and
Services Tax (GST) is a path-breaking reform that will only bear fruit in the
long run after the initial hiccups have been sorted out, said Mr Ganesh Kumar
Gupta, President, Federation of Indian Export Organisations, while addressing
exporters at a post-GST meet on export compliance organised by FIEO in Mumbai on
July 13, 2017. He elaborated that the liquidity problems of exporters,
constraints in job work, delays in initial returns for exports in the months of
July and August, procedural issues in LUT/Bond, etc. are being flagged by FIEO
and were taken up during his meeting with the Commerce and Industry Minister
recently.

He appreciated that
the government has considered FIEO’s various requests on priority by giving
suitable clarifications and also nominating Mr Satya Srinivas, JS Customs as the
nodal point in CBEC, and Mr Ajay Srivastava, Joint DGFT as the nodal point in
DGFT to clarify the queries of exporters regarding GST.

Mr P. K. Mohanty,
Consultant, GST, CBEC, New Delhi described GST as a great reform that will lead
to greater transparency and transformation. It will have a profound and positive
impact on society, economy and the tax regime and will change the way one runs
his/her business as well as tax collection. Once the system stabilises, life
will be better and ease of doing business would be certainly realised. Dedicated
efforts have been made by the Central and state officials for GST
implementation, he said.

Mr Rajiv Jalota,
Commissioner, State Tax GST, Maharashtra informed that the state government has
enacted SGST Act, Rules and Notifications on the lines of Central legislation
and that the state is geared to meet the challenges of the new regime.

Dr Ajay Sahai, DG
and CEO, FIEO, raised the concern that GST will severely dent the liquidity of
the exporter in a big way, likely increasing the compliance cost of the merchant
exporter. This could result in India’s export competitiveness falling by about
2 per cent, which would be a big blow for exporters. He, however, added that the
government is looking at various options to neutralise such effects under the
GST regime.

Addressing the
participants, Mr Khalid M. Khan, Regional Chairman, FIEO (WR), flagged the issue
that while transition input tax credits and inherent benefits of GST would lower
costs, higher GST rates for products may play spoilsport in some cases.
Determination of price and being competitive would be critical for all
enterprises, especially for price-sensitive products. Even MSMEs would work on
pricing patterns to remain effective, he said.